Powszechna Kasa Oszczednosci Bk Plski : Report No. 42/2017 – PFSA decision imposing on Powszechna Kasa Oszczędności Bank Polski SA the amount of an additional capital requirement

Legal basis:

Article 17.1 MAR Regulation

Contents of the Report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski S.A. ('Bank') hereby reports that on 16 November 2017 received the decision of the Polish Financial Supervision Authority ('PFSA') concerning imposing on the Bank the amount of an additional capital requirement over the amount calculated in accordance with detailed rules defined in Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012 (OJ L 176, 27.06.2013, p. 1 with additional amendments - 'Regulation No. 575/2013').

The PFSA imposed on the Bank the additional capital requirement covering the risk of the foreign currency mortgage loans for households, at individual level at amount 0.66 p.p., over the amount calculated in accordance with article 92 item 1 letter c of the Regulation No. 575/2013, which should be covered at least in 75% by Tier1 funds (equivalent to own funds requirement of 0.50 p.p. over the amount calculated in accordance with article 92 item 1 letter b of the Regulation No. 575/2013) and at least in 56% by Common Equity Tier 1 (equivalent to own funds requirement of 0.37 p.p. over the amount calculated in accordance with article 92 item 1 letter b of the Regulation No. 575/2013).

Based on the article 11.2 item 21 of the Banking Law, the PFSA decision is immediately in force.

Previously, as the Bank informed in the report no 51/2016 published on 18 of October 2016, the Bank was obliged to maintain own funds for the coverage of additional capital requirement at the level of 0.83 p.p., which consists of at least 75% of Tier I capital (equivalent to 0.62 p.p.).

At the date of this current report, the Bank fulfills the PFSA requirement related to the minimum capital adequacy ratios on both the individual and consolidated levels.